Why is Muthoot Cap.Serv falling/rising?

As of 25-Jun, Muthoot Capital Services Ltd is experiencing a rise in its stock price, currently at Rs 326.00, reflecting an increase of Rs 13.6 or 4.35%. The stock has shown strong performance recently, gaining 10.75% over the last two days and outperforming its sector by 3.74% today. It has also been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating positive momentum. However, despite a 2.35% return over the past year, the company's profits have declined by 11%, and it has a relatively low Return on Equity (ROE) of 7, which suggests that while the stock is currently attractive in terms of valuation, there are underlying concerns regarding its long-term growth potential.
In the broader market context, Muthoot Capital's short-term return of 12.92% over the past week significantly outpaces the Sensex's return of 1.61%, indicating strong relative performance. However, the stock's year-to-date performance shows a decline of 2.38%, contrasting with the Sensex's gain of 5.91%. This discrepancy highlights the stock's volatility and potential investor concerns, especially given the weak long-term fundamentals, such as a negative growth rate in net sales and operating profit. The lack of domestic mutual fund investment may also reflect caution among institutional investors regarding the company's future prospects.